Bitcoin was initially created with the purpose of being a purely peer-to-peer version of electronic cash that would allow online payments, nevertheless, cryptocurrencies payments are still in a development stage.
In the last few years more and more technological solutions that simplify the life of vendors that want to accept crypto payments were introduced.
As a result, more vendors are accepting crypto as a payment method and crypto ATM networks are increasing every year. Mass adoption of crypto is getting closer, but, at this stage, the question still poses: what can you buy with cryptocurrencies in 2021?
🏠 Can I buy a house with crypto?
The answer is yes. Buy luxury properties around the world not only with Bitcoin but also Ethereum, Cardano, Ripple or DogeCoin.
🍔 Can I spend crypto on food?
Well, yes but mostly fast food. Fast food chains are getting into crypto to attract customers or to get some buzz like Burger King, Coca-Cola, Subway, Domino’s Pizza or Starbucks, but be aware that it may not be available in the country you live in.
🚘 Can I buy a car with Bitcoin?
🚀 Can I use crypto to travel?
CheapAir accepts 10 different coins for you to spend on your flights.
Book a tour now that Experiences’ giant GetYourGuide accepts DogeCoin in the US.
All space travels expenses can be paid in Bitcoin at Virgin Galactic.
Find a Bitcoin ATM when traveling with this interactive map when you need to convert to FIAT;
💻 ⚽ Other stuff you can spend your crypto on
Microsoft lets you use BTC to shop at their Windows and Xbox stores.
You can use 50+ different coins to make Twitch donations.
🎗️ Charities that accept crypto donations
The Giving Block has a nice tool to filter through the countless nonprofits accepting cryptocurrencies.
You can also donate crypto with GiveCrypto, a nonprofit that distributes cryptocurrency to people living in poverty.
🧾 Can I pay my taxes with crypto?
Individuals and companies who are liable to tax in the Canton of Zug in Switzerland are able to pay their tax invoices with the cryptocurrencies Bitcoin and Ethereum.
El Salvador introduced Bitcoin as a legal tender and will make it possible to pay taxes with Bitcoin
But don't forget, if you buy something with crypto, it is probably a good idea to buy back part of the crypto you spent, so that you don't end up like the Bitcoin Pizza Guy.
What’s the tax impact of paying with cryptocurrencies?
As an example, in the US paying with cryptocurrencies is considered a taxable event which means that a payment will give rise to capital gain or loss.
In fact, according to the IRS, “if you pay for a service using virtual currency that you hold as a capital asset, then you have exchanged a capital asset for that service and will have a capital gain or loss”.
In this context, you should be aware of this fact so that you don’t inadvertently increase your tax burden while doing payments with cryptocurrencies. You could also combine a tax loss harvesting strategy with payments made with crypto, to make it more efficient from a tax perspective.
In regards to donations to charities, donating your crypto is tax free and deductible as long as you are donating to an IRS-recognized tax-exempt charity. The amount of your donation that is tax deductible (between 30% and 50%) depends on how long you have held the assets.
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Disclaimer: The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto taxes, we recommend contacting a specialist in the specific country.